Security forces in Afghanistan have been battling with gunmen following an attack on the Iraqi embassy in Kabul.

It began when a suicide bomber blew himself up at the main gate, allowing gunmen to enter the building.

Police on the scene said the attackers appeared to have taken cover in the embassy building in a business district of the city, from where smoke could be seen rising.

Militant group Islamic State have claimed responsibility for the attack.

Iraq’s chargé d’affaires was rescued from the building and taken to the Egyptian embassy and attempts were also underway to evacuate two Iraqi staffers.

Two Afghan guards of the embassy were killed in the attack, which was under suppressed by mid-afternoon.

The attack comes a week after at least 35 people were killed in a suicide attack on government workers in Kabul and underlines the precarious security in Afghanistan as the U.S. administration considers an overhaul of its policy in the region.